Carasent — Investor Presentation 2021

May 25, 2021

Company presentation

Disclaimer

Certain statements made in this Presentation may include forward-looking statements. These statements relate to the Company's expectations, beliefs, intentions or strategies regarding the future. The forwardlooking statements reflect the Company's current views and assumptions with respect to future events and are subject to risks and uncertainties.

All though the Company believes that its expectations and the Presentation are based upon reasonable assumptions, it can give no assurance that those expectations will be achieved or that the actual results will be as set out in the Presentation.

Carasent ASA is making no representations or warranty, expressed or implied, as to the accuracy, reliability or completeness of the Presentation, and neither Carasent ASA, nor any of its directors, officers, employees or advisors will have any liability to you or any other person resulting from your use.

1.	Acquisition of Metodika
2.	Carasent overview
3.	Market development and growth opportunities
4.	Financials

Carasent acquires Metodika AB

Transaction and company background

	▪ On Tuesday 25 May 2021, Carasent announced the acquisition of Metodika AB
	▪ Agreed enterprise value of SEK 108 million, corresponding to an EV/Sales 2020 multiple of 3.9x
Transation overview	▪ The purchase price has been settled through shares in Carasent (20%) and a cash consideration (80%)
	▪ The share considerations is valued at NOK 39.1 per share
	▪ All selling shareholders have entered into a lock-up agreement of 18 months on the Carasent Shares
	▪ Provides clinical management software solutions for the specialist healthcare market
	▪ Attractive and loyal base of 54 customers, including private elective care clinics up to mid-sized hospitals and occupational healthcare providers
Metodika highlights	▪ Strong market position in Nordics, with presence in total of 10 countries
	▪ Capabilities and solutions within inpatient care
	▪ Total revenues of SEK 28m and recurring revenues of SEK 20m for 2020
	▪ Historical CAGR of 10% from 2013-2020, with 14% growth in recurring revenue streams

= Location of customers

Strong synergy potential from combining Evimeria and Metodika

Attractive customer base	Providing a combined and comprehensive product offering to Metodika's loyal customer base
Robust foothold in Norway and Denmark	Market entry in Denmark and strengthening of position in Norway	✓
Presence in additional markets	Gain a presence in international markets, both in terms of customer base and local know how	Accelerate growth through increased scale and breadth of offering
Complementary technical capabilities	Gain access to knowhow and solution covering inpatient care to broaden Evimeria's offering	✓ Cost synergies from combining the platforms

Pro forma revenues of NOK 126m LTM Q1 2021

1: Illustrative figures for Avans Soma and Metodika, adjusted to IFRS for comparison purposes (unaudited, for illustrative purposes only) 2: Evimeria and Metodika figures adjusted to NOK

Carasent overview

Carasent ASA

• Carasent's strategy is to invest in companies that has the potential to develop and expand digitalization within the healthcare sector in Scandinavia
• Acquired Evimeria EMR AB in May 2018 and AvansSoma Holding AS in December 2020
• Listed on the Oslo Stock Exchange, ticker CARA
• Evimeria is the fundament
  • Scalable and proven track record
  • Organization can be leveraged in many dimensions
• Growth and expansion
  • Existing markets Organic growth

• New geographies

• New segments Organic and potential M&A
• New products and services

At a glance

▪ Webdoc is a cloud-based proprietary EMR software solution for the private healthcare segment Evimera ▪ Targeting private healthcare clinics, currently serving ~500 clinics across Sweden ▪ Total market size of SEK 1bn with a ~10% market share
▪ Leading provider of e-health solutions for social care and rehabilitation providers
▪ Targets niche segments with robust underlying dynamics and limited competition
Avans Soma ▪ Strong market position, with limited churn and high degree of earnings visibility
▪ Significant organic growth potential through multiple levers on existing customer base and from winning new customers
Provides clinical management software solutions for the ▪ Nordic private specialist healthcare market
Targets the mid-segment inpatient providers, from smaller ▪ Metodika clinics to mid-sized hospitals
Strong market position in loyal segment that requires ▪ highly specialized functionality

Evimeria has a robust track record of profitable growth

	Key highlights		Key figures
Unique business	▪ Unique revenue model combining subscription fees with fee per visit	>40%	+25%	>90%
model	▪ High degree of earnings visibility with >90% recurring revenues	Annual organic	EBIT margins	Recurring revenue
Attractive cash	▪ Capital light business with attractive working capital profile	revenue growth
flow profile	▪ Negligible maintenance capex requirements (IT maintenance expensed)	Revenue and EBIT margin development (SEKm)
Driving organic	▪ Robust track record of organic growth, with revenue CAGR of 41% since 2016		51	69
growth	▪ Consistent growth 10 quarters in a row ever since the acquisition of Evimeria in Q2 2018	25	37
Organizational	▪ Scalable platform with appropriate infrastructure for growth in place	17 17%	25% 19%	27%
framework in place	Ability to develop adjacent applications ▪ and expand to new geographies	17% 2016 2017	2018 2019	2020

Continued strong profitable growth expected for existing business in 2021

Successfully executing acquisitions with strong strategic rationale

Investment highlights

Proven track record of driving revenue and earnings growth

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Attractive business model with high degree of revenue visibility and solid earnings profile

Potential for accelerated growth and expansion into adjacent services, segments and geographies

Management team with significant experience

Company overview and performance

Financials (SEK '000s)

EVIMERIA IFRS ADJUSTED (SEKk)	Q1 2020	Q1 2021	2019	2020
Webdoc license	8,030	9,530	26,716	33,869
Integrated Services	6,689	9,694	19,875	29,716
Consulting	1,200	1,435	4,718	5,034
Other	16	1	75	256
Revenue	15,935	20,661	51,385	68,875
Growth (%)		30%		34%
COGS	3,175	4,028	9,388	13,462
Gross margin	12,759	16,633	41,997	55,412
Gross margin (%)	80%	81%	82%	81%
OPEX	6,733	8,652	24,579	28,246
EBITDA	6,026	7,981	17,418	27,166
EBITDA margin (%)	38%	39%	34%	39%
D&A	2,284	2,689	4,443	8,790
EBIT	3,742	5,292	12,975	18,376
EBIT margin (%)	24%	26%	25%	27%

50%+ CAGR EBIT GROWTH 25%+ EBIT MARGINS
IFRS Adjusted Audited on Swedish GAAP (K2)

Why do we win?

Modern platform

Web based and userfriendly interface

Cloud based

Easy to implement No upfront investments

Business model

Pay as you go – transparent with customer revenues

No long-term agreements

Integrated services

Covers all the businesscritical needs for our targeted segments

Focused

Products and services 100% developed to meet our segments needs Support process

Market structure and competition

Regions	Market	Competition
	• Approximately 6,500 private health care clinics within our targeted segments in	Systems	Market share
21 regions	Sweden	Regional system used in the public healthcare mandatory	50%
	Total market size approx. SEK 1bn1 •	CGM, system J4 and Take Care	30-40%
	• Addressable market for Evimeria in the 50%+ range		5-10%
Regions have different approaches for different segments and financing	• 10%+ market share of TAM	Approx. 10 smaller (and/or EOL) systems	5-10%

Company overview and performance

AvansSoma

Market development and growth opportunities

Overall market trends

DRIVERS

The healthcare industry is facing underlying structural issues

• ✓ The proportion of the population aged 60 or older
• ✓ Medical progress and the ability to manage illness are contributing to an overall increased average lifetime
• ✓ Chronic diseases, such as diabetes, obesity and certain cardiovascular diseases, are increasing and are treated over longer periods of time

PROBLEM

The need for high-quality healthcare at lower cost to society has therefore never been greater

• ✓ Healthcare cost as a share of GDP is increasing rapidly across the Nordic countries
• ✓ Strong focus from all stakeholders on improving efficiency

• ✓ The use of digital solutions is increasing availability to patients
• ✓ Digital solutions also increase opportunities to share necessary and relevant information
• ✓ Receive healthcare on a remote basis when doctors are available via chat or video

Robust underlying drivers

Aging population ~3% Patient growth Digitalization growth Increasing life expectancy Total growth of ~6% Rising share of chronically ill ~3% Adoption of new services Value and cost efficiency Pressure from stakeholders

Driving revenue and earnings growth

Disproportional EBIT vs. customer growth enabled through unique business model, add-on services and significant room for margin improvements

Consistently growing the clinic base at ~30%

Strong traction in core markets

Attractively positioned vs. competition

Less than 1% historical churn

Continued development of Webdoc, integrated services and new products

Proven potential in existing clinic base

Strong historical margin uplift with further room for expansion

Multiple avenues for further growth

	New products / services	New segments	Geographic expansion
Organic initiatives	• Continued development of adjacent products and services Standalone products in new • markets	Several attractive segments • identified • Utilizing existing footprint and knowledge	• Norwegian expansion planned • Several attractive regions identified for further geographic expansion
M&A targets identified?	✓	✓	✓
Broad field of both organic and structural growth opportunities available

Financials

CARASENT ASA – Consolidated

• Revenues of NOK 28.2 million as compared to NOK 15.6 million during Q1 20.
• Including expenses for changes in fair value of previously issued stock options of NOK 10.4 million in Q1 the result was a net loss of NOK 7.7 million as compared to a net income of NOK 0.4 million during Q1 2020
• Cash balances of NOK 217.7 million on March 31, 2021

Evimeria EMR AB (IFRS Adjusted SEK)

• Revenue of SEK 20.7 million, an increase of 30 % as compared to Q1 2020.
• EBITDA of SEK 8.0 million as compared to SEK 6.0 million during Q1 2020.
• EBIT of SEK 5.3 million as compared to SEK 3.7 million during Q1 2020.
• Signed 34 new clinics during the First Quarter 2021. Ended the First Quarter with 529 active clinics.

Avans Soma (IFRS Adjusted NOK)

• Revenue of NOK 7.3 million, an increase of 32 % as compared to Q1 2020.
• EBITDA of NOK 2.2 million as compared to NOK 1.2 million during Q1 2020.
• EBIT of NOK 0.3 million as compared to a loss of NOK 0.5 million during Q1 2020.
• Signed 24 new units during the First Quarter 2021.

3 Months Ended March 31, 2021
(Amounts in NOK 1,000)	Unaudited Evimeria	Unaudited Avans Soma	Unaudited Carasent AS	Unaudited Carasent Recurring	Unaudited Carasent Non-recurring (*)	Unaudited Q1 Total
Active clinics/units	529	164				693
Total Operating Revenues	20,961	7,289		-	-	28,249
Total Cost of Sales	4,086	975		-	-	5,062
Gross Profit	16,874	6,313	-	-	-	23,188
Operating Expenses
Employee Compensation and Benefits	6,257	2,642		360		9,259
Other Operational and Administrative Costs	2,519	1,486		733		4,738
Total Operating Expenses	8,776	4,128	-	1,093	-	13,997
EBITDA	8,098	2,185	-	(1,093)	-	9,191
Depreciation and Amortization	2,728	1,843	-	947		5,518
EBIT	5,370	342	-	(2,040)	-	3,673
Other Expense
Interest Expense				-		-
Other Financial Items				-		-
Other Income and Expense	(146)	(29)			(10,384)	(10,559)
Total Other Expense	(146)	(29)	-	-	(10,384)	(10,559)
Income (loss) Before Income Taxes	5,224	313	-	(2,040)	(10,384)	(6,887)
Income Tax Expense	(1,002)			217		(785)
Net Income (loss) for the Period	4,222	313	-	(1,823)	(10,384)	(7,672)

Q1 2021